With income drawdown complaints on the rise Fiona Tait takes a look at why this may be and attempts to explode some myths around this product.
Speculation has once again risen that income drawdown could be the latest “pensions transfer scandal”. Like Watergate, it seems that once we’ve had one scandal, everything else must follow the same pattern. But why drawdown? And why now? It is true that the level of complaints about income drawdown has risen. According to the Financial Ombudsman Service (FOS), the number of new complaints about income drawdown rose from 88 in 2007/8 to 130 in 2008/9,1 an increase of 48%. It is however necessary to look at this in context. This is out of a total of 4,825 new complaints about pensions. ...
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